I am doing my mother-in-laws taxes using TurboTax and have a question about why box 2b is checked on her 1099-R when she is receiving monthly payments from her retirement plan. She was never in a 401-K or an IRA, but it appears that her retirement payments are being classified as an IRA.
She has Federal With Holding deducted from her monthly payments. If I deselect box 2B there is a difference of over 2,000.00 credited to her, but if the box is selected her Federal refund is about 299.00. What is going on here?
Her retirement payments are coming from years of working for her local County Government. She is 82 years old.